Government Bond Yield: Australian Government: Indexed data was reported at 2.232 % pa in Apr 2025. This records an increase from the previous number of 2.214 % pa for Mar 2025. Government Bond Yield: Australian Government: Indexed data is updated monthly, averaging 2.829 % pa from Jul 1985 (Median) to Apr 2025, with 478 observations. The data reached an all-time high of 5.830 % pa in Jan 1987 and a record low of -0.809 % pa in Aug 2021. Government Bond Yield: Australian Government: Indexed data remains active status in CEIC and is reported by Reserve Bank of Australia. The data is categorized under Global Database’s Australia – Table AU.M007: Government Bond Yield. This series is an inflation-indexed bond yield with a maturity of 10 years.

Inflation-Linked Bonds Market Outlook

According to our latest research, the global inflation-linked bonds market size reached USD 3.26 trillion in 2024, reflecting robust investor demand amidst ongoing economic volatility and persistent inflationary pressures. The market is expected to expand at a CAGR of 7.1% over the forecast period, with the total market value projected to reach USD 6.04 trillion by 2033. This growth is primarily driven by the increasing adoption of inflation-hedging strategies among institutional and retail investors, as well as rising government and corporate issuances in both developed and emerging economies.

One of the primary growth factors fueling the expansion of the inflation-linked bonds market is the heightened global inflationary environment witnessed over the past few years. As central banks across major economies grapple with persistent inflation, investors are actively seeking instruments that can safeguard their portfolios against the erosion of purchasing power. Inflation-linked bonds, which adjust principal and interest payments in line with inflation indices, have become a preferred choice for both risk-averse and yield-seeking investors. The increased issuance of Treasury Inflation-Protected Securities (TIPS) in the United States and similar products in Europe and Asia has further catalyzed market growth, with governments leveraging these instruments to attract a broader base of investors and manage fiscal risks more effectively.

Another significant driver is the evolving regulatory landscape and the growing sophistication of financial markets. Regulatory frameworks in regions like North America and Europe have encouraged pension funds, insurance companies, and other institutional investors to incorporate inflation-linked securities into their portfolios as part of prudent risk management practices. Additionally, the proliferation of digital trading platforms and online distribution channels has democratized access to these instruments for retail investors, expanding the investor base and boosting overall market liquidity. The integration of advanced analytics and portfolio management tools has also enabled investors to better assess risk-return profiles and optimize their exposure to inflation-linked assets.

Furthermore, the diversification of issuers beyond sovereign governments has played a pivotal role in shaping the inflation-linked bonds market. In recent years, there has been a noticeable uptick in corporate and supranational issuances, as organizations seek to align their debt structures with long-term inflation expectations and investor demand. This trend is particularly pronounced in sectors such as infrastructure, utilities, and financial services, where long-duration liabilities necessitate inflation protection. The expansion of the market’s issuer base not only enhances product diversity but also supports deeper secondary market activity and price discovery, contributing to the overall maturation and resilience of the inflation-linked bonds ecosystem.

Regionally, North America continues to dominate the global inflation-linked bonds market, accounting for the largest share in 2024, followed closely by Europe and Asia Pacific. The United States, with its highly liquid TIPS market, remains the epicenter of activity, while the United Kingdom and Eurozone countries have also witnessed increased issuance of index-linked gilts and bonds. In Asia Pacific, countries such as Japan and Australia are emerging as key growth markets, driven by rising inflation expectations and proactive policy measures. Meanwhile, Latin America and the Middle East & Africa are gradually expanding their presence, buoyed by macroeconomic reforms and efforts to develop local currency bond markets.

Type Analysis

The inflation-linked bonds market is segmented by type into Treasury Inflation-Protected Securities (TIPS), Index-Linked Gilts, Capital Indexed Bonds, and Others. TIPS, issued primarily by the US Treasury, represent the largest and most liquid segment of the market, offering investors a direct hedge against US inflation. The robust demand for TIPS is underpinned by the United States' status as a global economic powerhouse and the high degree of transparency and regulatory oversight in its financial markets. TIPS have become a staple in institutional portfolios, particularly among pension funds and insurance compani